One of the few states, Wyoming, does not charge corporations with a corporate income tax. Therefore, Wyoming law exempts LLCs from paying state income tax. The payment of federal taxes, such as Social Security and Medicare taxes, federal unemployment taxes, and federal income tax withholding, is necessary for LLCs with employees. Sales tax in Wyoming is
On the retail sale of tangible personal property and a limited number of services, Wyoming levies a 4% sales tax. Wyoming does not, however, impose a statewide sales tax on services. On retail sales of tangible personal property, counties may charge an extra 1% tax, bringing the overall sales tax rate to 5%. Wyoming requires LLCs that sell items to collect and send sales tax to the state. Property tax in Wyoming is
Real and personal property are subject to property tax in Wyoming. The county has an impact on the tax rate. Wyoming does, however, provide a number of property tax exclusions, including the Freeport exemption and the commercial inventory tax exemption, which exclude items kept in Wyoming for less than a year. Wyoming requires LLCs to pay property tax on any real estate or personal property they hold. Neither corporations nor LLCs are subject to a state-level business tax in Wyoming. However, corporations and LLCs must submit an annual report and a $50 filing fee to the Wyoming Secretary of State. Local business taxes, such as those imposed on municipal business licenses, may also apply to LLCs and corporations. Wyoming: Is it a Tax Haven?
Considering its business-friendly environment and low taxes, Wyoming is frequently referred to be a tax haven for companies. Wyoming does not, however, provide the same amount of anonymity and confidentiality as other tax havens like Bermuda or the Cayman Islands. Federal law mandates that Wyoming share tax data with the IRS and other federal entities. Does Wyoming Tax Income From Outside the State?
Individuals and corporations who make revenue outside of Wyoming are not taxed on that income. As a result, if your Wyoming-based LLC receives revenue from sources outside the state, you are exempt from paying state income taxes on such income.
Because it levies fewer taxes than other states, including corporate income tax, personal income tax, and state-level business tax, Wyoming is indeed regarded as having low taxes. However, federal taxes including Social Security and Medicare taxes as well as federal income tax withholding remain applicable to LLCs in Wyoming. Additionally, LLCs must pay property taxes and collect and submit sales taxes to the state of Wyoming if they own property there and sell items there. In summary, Wyoming is a tax-friendly state for enterprises and LLCs. Wyoming does not levy a state-level business tax and does not require LLCs to pay state income tax. However, LLCs may need to pay local company taxes in addition to continuing to be liable to federal taxes. Additionally, LLCs must collect and remit sales tax from customers in Wyoming and pay property tax on any real estate they possess there.